Footwear Retailing in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) August 12, 2012
Australians' love of shoes has been put to the test. Economic conditions that reflect household spending characterises the performance of the Footwear Retailing industry. As a result, the financial crisis that commenced in 2008 was also a crisis for footwear retailers. According to IBISWorld industry analyst, Kiera Outlaw “this has caused revenue to contract over the five years through 2012-13 at an annualised 3.4% to $3.09 billion”. Over the current year industry revenue is expected to contract 4.3%. The industry is facing pressure from an increasingly crowded retail space. Industry players are not only faced with increased competition from traditional competitors, department stores, but also online retailers, which often are able to deliver goods at prices well below that offered through traditional channels.
The high value of the Australian dollar in recent years has made online bargain hunting for the perfect pair of shoes all the more appealing for savvy Australian consumers. To further add to the Footwear Retailing industry's woes, Australians have become more conservative in their spending since the global financial crisis. To worsen matters, they are increasing the savings rate and generally more concerned with paying down debt. Outlaw adds, “over the next five years conditions are anticipated to improve for the industry as Australian consumers loosen their purse strings”. Nonetheless, pressure from online and other retailers is expected to intensify. The advent of international retailers into the Australian market will add further pressure.
Footwear retailing has a very low level of concentration of businesses. The industry is made up of a large number of small retail outlets. The large and highly varied range of product segments available means that almost every store will establish itself in a different way. The industry’s major players are RCG Corporation Limited, Betts Group Pty Ltd, Rebel Group Limited and Fusion Retail Brands Pty Ltd.
For more information, visit IBISWorld’s Footwear Retailing report in Australia industry page.
These stores are engaged in the retail of footwear and retailed items. This involves purchasing a variety of footwear products for all purposes from wholesalers and making them available to the public. Generally, retailers will not value-add or change products further. Most of these retailers will undertake sales and administrative activities such as customer service, product merchandising, advertising, inventory control and cash handling.
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